Sydney, August 27
Australia’s consumer prices rose sharply in July, driven by a 13% spike in electricity costs, according to the Australian Bureau of Statistics. The monthly Consumer Price Index (CPI) jumped 2.8% year-on-year, up from 1.9% in June, and well above forecasts of 2.3%.
The surge was largely due to the timing of federal electricity rebates, which were not distributed to households in New South Wales and the Australian Capital Territory during July. These households faced higher out-of-pocket costs, compounded by annual price reviews.
- Core Inflation:
The trimmed mean measure rose to 2.7%, while a broader core metric excluding volatile items hit 3.2%.
- Other Price Movements:
Rents: Up 3.9% year-on-year, the slowest pace since late 2022.
Clothing & Footwear: Rose 1.7% in the month.
- Currency & Policy:
The Australian dollar edged above 65 cents. Investors still expect the Reserve Bank of Australia (RBA) to cut rates in November, despite the inflation spike.
The RBA projects headline inflation to rise to 3.1% by mid-2026, while core inflation is expected to remain anchored around 2.6%.
(source CNBC)
—Agencies
Leave a Reply